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Prime Minister Narendra Modi was accorded a ceremonial guard of honour at the Istana Merdeka here on Wednesday.
After the welcoming ceremony, the Prime Minister will hold one-on-one verandah talks with Indonesian President Joko Widodo.
Both India and Indonesia have warm and cordial bilateral relations. The two countries also share close cultural ties as well.
India and Indonesia are among the largest democracies in the world. Both are member states of the G-20, the E7 (countries), the Non-Aligned Movement (NAM), and the United Nations (UN) respectively.
Indian ambassador to Indonesia Pradeep Kumar Rawat said on Monday that Prime Minister Modi's maiden visit to Indonesia assumes significance as Indonesia is one of India's closest maritime neighbours and shares a deep historical and cultural connection.
He added that both countries were looking for joint-cooperation to counter terrorism.
Speaking to ANI, Pradeep Kumar Rawat said, "Both India and Indonesia face similar challenges. Our position against the scourge of terrorism is clear. We believe in both softer and harder approaches in tackling this issue."
"It (Indonesia) is our largest trading partner and the largest economy in Association of Southeast Asian Nations (ASEAN). We have invested 15 billion US dollars in Indonesia's economy. So, Prime Minister Modi's first ever visit to the country assumes much greater significance," Rawat added.
Talking about the Act East Policy, the envoy explained, "The government's Act East Policy acquires a very important place. Bilateral relations have multiple dimensions. The Act East Policy focuses on the extended neighbourhood in the Asia-Pacific region."
Bilateral trade between India and Indonesia was worth nearly USD 15 billion between January and October 2017, with Indonesia's surplus at USD 8.3 billion, according to Jakarta Globe.
Earlier in the day, Prime Minister Modi began his first official engagement in Indonesia by laying a wreath at the Kalibata National Heroes Cemetery in Jakarta, after arriving in the city on Monday evening.
Later, Prime Minister Modi will hold delegation-level talks with President Widodo.
Following the talks, both the leaders will give a joint statement and exchange of agreements will take place.
Prime Minister Modi and President Widodo will later inaugurate the kite exhibition at the National Monument and visit the Arjuna's Chariot. After this, the two leaders will pay a visit to Istiqlal Mosque.
Prime Minister Modi will then address an Indian community event at the Jakarta Convention Centre.
Further, Prime Minister Modi and President Widodo will attend the India-Indonesia CEO Forum.
Finally, a banquet will be hosted by the Indonesian President in honour of Prime Minister Modi, before the latter leaves for Malaysia and Singapore respectively.
(ANI)